Flipkart Internet sees losses widen to Rs 1,950 Cr in FY20
Flipkart Internet, which operates the B2C online marketplace, has seen its consolidated loss widen to Rs 1,950.5 crore for the financial year ended March 2020, even as revenue grew about 32 percent, as per regulatory documents.
The company had registered a consolidated loss after tax of Rs 1,625.7 crore in the previous fiscal, according to a Registrar of Companies filing shared by market intelligence firm Tofler.
Its consolidated net total income was at Rs 6,318.7 crore for 2019-20 as against Rs 4,803 crore in the previous financial year, a growth of 31.5 percent, it added. Flipkart did not respond to emailed queries.
On a standalone basis, the total loss widened to Rs 1,936.6 crore in FY20 from Rs 1624.4 crore in the previous year. Its standalone net total income was at Rs 6,317.7 crore in the financial year ended March 31, 2020 as against Rs 4,802.3 crore in the previous fiscal - up 31.5 percent.
Flipkart Internet said its revenue was mainly generated from ecommerce, information technology-enabled services, marketplace, and related support services.
During the financial year under review, the company had offered shares on a rights issue basis on March 23, 2020 pursuant to which over 4.93 lakh class-A equity shares had been offered to the existing shareholders, of the company - Flipkart Marketplace Pvt Ltd, Singapore and Flipkart Pvt Ltd, Singapore, the filing said.
"Pursuant to this offer, 3,469 class-A equity shares had been allotted to Flipkart Pvt Ltd, Singapore and 2,13,929 class-A equity shares had been allotted to Flipkart Marketplace Pvt Ltd, Singapore on March 31, 2020," it added.
In 2018, Walmart Inc invested $16 billion for acquiring 77 percent stake in Flipkart, and earlier this year, led a $1.2 billion funding round in the e-commerce company.
In India, Flipkart is locked in an intense battle with US-based e-tailing giant Amazon with both entities pumping in millions of dollars towards promotions, building infrastructure and logistics as they woo customers to shop online.
Documents filed by Flipkart India, the B2B arm of Walmart-owned Flipkart, had showed that the entity had narrowed its losses to Rs 3,150.6 crore during 2019-20 as compared to a loss of Rs 3,836.8 crore in the previous financial year. Its net total income of Flipkart India was Rs 34,610.1 crore as against Rs 30,934.9 crore in the previous financial year, up 11.88 percent.